The deal with gold the last few daysFrom Friday and over the weekend gold shot up to the mid $2100 dollar US range then retreatreated to a low in the $2020 US dollar range on Monday.
Many are scratching their heads over this one , but the spike and big retreat should be put down to within the narrow parameters of activity from those currently attracted to gold and not from any sudden broader mainstream buyer interest.
Mainstream has not come around to gold mania in the least just yet. That time is reserved for the inflation tsunami that will explode as a result of rampant government spending now and to come.
Government/s today and tomorrow are not going to relent on runaway spending as spending is the only means left via monetization through the Fed to keep this house of cards built on debt economy functioning further.
This latest roust comes from those dialed into gold who represent only a fraction of buyers from the mainstream who make up a tiny army of swing traders , shorts and longs.
The recent ascent in the POG triggered a spate of mini panic buying suddenly with swing traders leading the way - drawing in old and new longs in the run up nationally and internationally,
Swing trade profit taking with some likely orchestrated as usual short activity followed.
I covered this topic a couple months back conveying that this is what can be expected over and over with shorters and swing traders making bank before the dam breaks open and the sustained move up in the POG comes .
At least the games they play are now happening with the POG going in the right direction. Nevertheless the longs will wait, accumulate and hold.
The big payday/s will come for them when the Fed and their lies and games are laid bare for all the broader public to revolt over.
Rinse lather repeat... sure enough ... Gold is in the $2040's up from the $2020's earlier and surely rising all over again. The game as it is goes on but for now.